What is the amount a in actual dollars equivalent to a’

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Reference no: EM13148801

Consider a situation, where (a) the equal-payment cash flow of $1,000 in constant dollars over three years is converted from (b) the equal-payment cash flow in actual dollars over three years, at an annual general inflation rate of f . Also, i = 9%. What is the amount A in actual dollars equivalent to A’ = $1,000 in constant dollars? Please provide step by step detail

Reference no: EM13148801

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